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what it is
Lantronix sells the chips, modules, and remote-management gear that let industrial machines connect, report back, and stay online.
how it gets paid
Last year Lantronix made $123M in revenue.
why growth slowed
Revenue fell 23.3% in fiscal 2025 versus the prior year. The latest quarter was about $29M — in line with a ~$123M annual run rate, not a one-off spike.
what just happened
Revenue was about $29M in the latest quarter, up modestly vs. prior year, while GAAP EPS was about -$0.07 and profits on a GAAP basis still did not show up.
At a glance
B balance sheet — gets the job done, barely
40/100 earnings predictability — expect surprises
-$0.29 fy2025 eps est
~$123M fy2025 revenue
negative GAAP operating margin
xvary composite: 62/100 — average
What they do
Lantronix sells the chips, modules, and remote-management gear that let industrial machines connect, report back, and stay online.
Lantronix wins when your equipment cannot afford to go dark. Its products sit inside industrial systems, so swapping vendors means touching hardware, software, and field operations at once. That stickiness showed up in gross margin: 44.2% last quarter. Gross margin → money left after making the product → enough room to fund R&D even while operating margin stayed at -8.9%.
How they make money
$123M
annual revenue · revenue declined -23.3% last year
total revenue
$123M
23.3%
The products that matter
embedded networking modules
Industrial IoT Connectivity
$98M · roughly 80% of revenue
This is the core business, and it fell 23.3% last year. If this segment keeps shrinking, the rest of the story does not matter much.
core revenue base
device monitoring and security
Software & Services
$25M · roughly 20% of revenue
This $25M segment was flat while the company-wide revenue base contracted. That's steadier than hardware, but not enough to change the math yet.
stability, not rescue
hardware for on-device ai
Edge AI Solutions
newer push · margin repair attempt
Management is pushing Edge AI through the MediaTek partnership, but the current snapshot provides no revenue contribution. For now, you are buying potential, not proof.
the new bet
Key numbers
$123M
annual revenue
This is the real sales base from SEC filings, so every growth story has to be judged against a company that currently does $123M, not fantasy math.
$28.8M
latest quarter
Q4 fiscal 2025 revenue was $28.8M per the company — roughly one-fourth of the ~$123M fiscal year, which is what you expect from a normal seasonal mix.
44.2%
gross margin
Gross margin → profit after making the product → enough room to improve if operating costs stop eating everything.
-8.9%
operating margin
Operating margin → profit after running the business → on a GAAP basis the company was still underwater at the operating line while restructuring and mix normalize.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 1 — safer than 95% of stocks
- price stability 10 / 100
- long-term debt $17M (6% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for LTRX right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue was $28.8M in Q4 fiscal 2025, with modest vs. prior year growth, while GAAP EPS was ($0.07) — still a loss.
The quarter was in line with the ~$123M annual base, not a step-change in scale. Gross margin was about 44.2%, but GAAP EPS stayed negative as operating costs and charges still dominated.
$28.8M
revenue
-$0.07
eps
44.2%
gross margin
the number that mattered
The ~$28.8M revenue print mattered because it showed the business tracking near its guided quarterly band — execution and path to GAAP profitability matter more than a one-off top-line surprise.
source: company earnings report, 2026
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What could go wrong
The top risk is ongoing contraction in industrial IoT hardware. That segment is roughly 80% of revenue, and it already fell 23.3% last year.
med
hardware shrinkage keeps overwhelming the story
IoT hardware and solutions produced $98M of the $123M revenue base. That segment fell 23.3% in fiscal 2025, and the recovery story depends on stabilizing that core book.
If the biggest segment keeps falling, software stability and new-product headlines will not be enough to protect earnings.
med
thin margins leave no buffer
Gross margin was 44.2%, but GAAP operating margin stayed negative and the latest quarter still posted EBITDA pressure. That's the difference between a workable model and one still proving it.
A small cost miss or slower sales ramp can push the business back into losses quickly.
med
Edge AI is still more thesis than evidence
The MediaTek partnership and broader Edge AI positioning may help. The current snapshot provides no revenue contribution from that push, which means investors are still waiting for proof.
If Edge AI does not translate into customer wins, the company is left with the same shrinking base business and the same margin problem.
Put the numbers together and the picture is simple: a ~$123M business with a negative GAAP operating margin is trying to outrun a 23.3% revenue decline in its largest segment.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next report
q3 2026 earnings
You want one thing first: revenue to stop falling. Positive growth would matter more than any new product slogan.
segment mix
software share of revenue
Software and services are $25M versus $98M for hardware. If that mix does not improve, the business stays exposed to lower-growth hardware cycles.
profitability
EBITDA turning positive
The latest quarter was -$1.95M. A move back above zero would tell you the operating model is stabilizing rather than just being described that way.
execution risk
actual Edge AI customer wins
Partnerships and channel deals are setup. The proof is design wins, order flow, and revenue attached to the Edge AI push.
Analyst rankings
earnings predictability
40 / 100
In human-speak: analysts do not trust these quarterly numbers to behave neatly.
balance sheet strength
B
This is serviceable, not elite. The balance sheet buys time. It does not solve the growth problem.
price stability
10 / 100
The stock does not trade like a bunker. Small-cap sentiment can move faster than fundamentals here.
source: institutional data
Institutional activity
institutional ownership data for LTRX is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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